Ipek surged 13.4 percent to 4.14 liras at 2:57 p.m. in
Istanbul, the most since January 30. The number of shares traded
was about 3.3 times the stock’s three-month daily average,
according to data compiled by Bloomberg. The third consecutive
day of gains took this month’s advance to 28 percent, compared
with a 4.6 percent decline in the benchmark Borsa Istanbul
National 100 (XU100) index over the same period.

The company has discovered evidence of hydrocarbons in one
of the two exploration wells it operates in southeast Turkey,
according to a filing with Borsa Istanbul on July 5. Studies at
the “Koza 1” well points to high quality oil at 4,050 meters
underground, though the yield may be “limited,” Ipek (IPEKE) said. It
has also found evidence of “a high amount of” natural gas,
according to the filing. Ipek’s shares jumped 10 percent after
its statement on Friday.

“The market has a positive view for the shares after this
filing,” Erkan Savran, senior vice president at Ak Investment
in Istanbul, said in a phone interview today. “Investors have
expectations from these two wells Ipek operates, though how much
oil, if any, can be produced remains unclear.”

Ipek has reached 1,800 meters of depth in its second well,
named “Ipek Koza 1,” it said in the statement. The targeted
reservoir level at this well is at about 3,000 meters, according
to the filing.

Ipek Enerji, which is 62 percent is owned by Koza Ipek
Holding AS, reported first-quarter net income of 90.9 million
liras ($47 million), down 53 percent from 192.3 million liras a
year ago. Two analysts, including Savran, recommend investors
buy the shares, while six say hold and one recommends selling,
according to data compiled by Bloomberg.